Tembec completes land sale in BC
By CNW Telbec
June 25, 2014, Montreal - Tembec announced the closing of the sale of approximately 17,700 hectares of land located within the Regional District of East Kootenay, British Columbia, to Jemi Fibre Corp. ("Jemi"), which sale was previously announced on April 25, 2014. Total consideration for the transaction was $15 million. The transaction is the first part of a two phase sale. The second phase of the sale, which is expected to occur in September 2014, relates to the sale to Jemi of approximately 31,800 hectares for a price of $20 million. This second phase remains subject to Jemi obtaining adequate financing. There can be no assurance that the second phase of the sale will be consummated in whole or in part.
The transaction is part of the BC Land Sale Initiative. Tembec has set an objective of realizing up to $70 million in land sales by December 2014. To date, the company has realized a total of $38.6 million. The company will provide regular updates on the BC Land Sale Initiative as it progresses. There can be no assurance that the company will attain the stated objective or that it will do so within the specified time period.
Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 3,500 employees and annual sales of approximately $1.6 billion. Tembec is listed on the TSX (TMB).